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johnpaech johnpaech
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6 years ago
Your firm currently has $250 million in debt outstanding with an 8% interest rate.  The terms of the loan require the firm to repay $50 million of the balance each year.  Suppose that the marginal corporate tax rate is 35% and that the interest tax shields have the same risk as the loan.  What is the present value of the interest tax shields from this debt?
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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anicidanicid
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6 years ago
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johnpaech Author
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#2
5 years ago
You took a load off my back, thanks for answering correctly
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